Boeing posts third annual loss in a row as Dreamliner prices hit $5.5 billion

Boeing a major milestone in its year-long 737 Max crisis deliveries jump helped generate cash in the fourth quarter for the first time in almost three years.

But now the company is facing mounting spending on its 787 Dreamliner program, which on Wednesday revealed $5.5 billion in costs related to manufacturing defects that have prevented Boeing from making these new ones over the past 15 months Handing over jets to customers.

Shares of the company fell more than 5% in afternoon trade, more than the broader market.

The manufacturer took a pre-tax charge of $3.5 billion for the Dreamliner in the fourth quarter. It expects an additional $2 billion in costs after cutting production of the planes, double its previous estimate.

“We can’t rush it”

Boeing first disclosed the flaws – tiny, improper clearances on some fuselages – in 2020. Defects were also found in other parts of some aircraft, and Boeing had to inspect the undelivered jets.

“While I don’t like any of the allegations, the progress has been significant,” CEO Dave Calhoun told CNBC.screeching in the streeton Wednesday about the 787. He declined to say when he expects regulators to grant approval and deliveries to resume. “We can’t rush it.”

Boeing reported free cash flow of $494 million for the fourth quarter, up from an outflow of $4.27 billion a year earlier, a milestone Boeing executives previously said they wouldn’t hit until 2022. It was spurred by a surge in 737 Max deliveries last year after regulators lifted bans on the jets following fatal crashes in 2018 and 2019.

China

China, a key customer for Boeing and the first country to ground the Max after the second crash, the last month was approaching lift its ban in the planes.

CFO Brian West told analysts on the quarterly conference call that shipments to China could resume “as early as the first quarter” of 2022, which could help the company generate more cash.

Here’s how Boeing compared to analyst estimates prepared by Refinitiv:

  • Adjusted Results: A loss of $7.69 per share versus an expected loss of 42 cents per share.
  • Revenue: $14.79 billion versus $16.59 billion expected.

Boeing lost $4.29 billion last year, its third consecutive annual loss Covid pandemic and production problems continued to affect the bottom line. That’s an improvement from 2020, when the company had a loss of $11.94 billion.

For the fourth quarter, Boeing reported a net loss of $4.16 billion, less than half the $8.44 billion it lost a year earlier. Revenue fell 3% year over year to $14.79 billion, down from $16.59 billion that analysts had expected.

‘renovation year’

“2021 was an important recovery year for us, and together we overcame significant hurdles,” Calhoun said in a note to employees on Wednesday. “While we still have work to do, I am confident that we are well positioned to accelerate our progress in 2022 and beyond.”

Chicago-based Boeing aircraft sales and deliveries increased last year, but deliveries of new planes to airlines still lagged behind European rival Airbus. The US company said it has increased production of the 737 Max to 26 a month, closer to the 31 a month it expects this year and up from the 19 a month it released in its last quarterly report.

But Boeing has been paralyzed for months by halting deliveries of its 787 Dreamliners for much of the past year due to a series of manufacturing defects that have left customers baffled American Airlines and Hawaiian Airlines.

American Airlines said last month it would be cutting its international flight schedule over 787 delivery delays. The airline’s CFO, Derek Kerr, said in an earnings call last week that Boeing is already paying penalties for the delays and “will compensate us for the losses” if there are more delays.

More delays

Kerr had said American expects to start deliveries of the Dreamliner again in mid-April, a timeframe Boeing CEO Calhoun did not confirm on Wednesday. “All I’m saying is that customers know everything we do,” Calhoun said, adding that airlines and Boeing “share the same regulator.”

“The company continues to perform follow-up work on 787 aircraft in inventory and is in detailed discussions with the FAA on the actions needed to resume deliveries,” Boeing said in a earnings release. “In the fourth quarter, the Company determined that these activities will take longer than previously anticipated, which will result in further delays in customer delivery dates and related customer considerations.”

CFO West referred to labor, material and supply chain shortages as “observation posts.”

Boeing’s large fleet of aircraft — 335 Max jets expected to be delivered by the end of 2023 — will provide a buffer, Calhoun said.

“When I think about the supply chain constraints that are out there, I hate that we got here this way, but having a stock of finished aircraft, particularly in relation to the Max, is at this moment beneficial,” Calhoun told CNBC.

recovery from travel

Calhoun said he expects the worst is behind the aviation sector after the pandemic crushed demand for air travel and new planes. Airline executives said in early January they expect international travel bookings to rebound this spring and summer after entry restrictions were lifted in recent months.

The company reiterated on Wednesday that it expects passenger traffic to return to 2019 levels next year or 2024.

Suppliers to Boeing and Airbus General Electric on Tuesday forecast a 20% increase in sales this year at its main aerospace division, which manufactures and repairs aircraft engines.

However, the recovery was bumpy. airlines incl delta, United and American earlier this month predicted the rapid spread of the Omicron variant, which began late last year delay a rebound travel demand by about two months. Executives at those airlines said they expect a strong spring and summer travel season.

On Tuesday, the Transportation Security Administration screened 1.06 million people, the fewest since April 2021.

Tech, playing, alcohol helped NFL earn nearly $2 billion in sponsorships

The National Football League is nearing $2 billion in partnership fees, the most in professional sports.

Agreements from betting firms and technology companies helped the NFL lure a record $1.8 billion in sponsorship revenue, sports partnerships consultancy firm IEG told CNBC. The NFL’s figure is a 12% increase year-over-year from $1.62 billion it made in the 2020 season. It pulled $1.47 billion from sponsorships in the 2019 season.

Sports gambling companies, casinos, and lotteries saw the most significant spike in NFL sponsorship agreements. DraftKings, FanDuel, and Caesars became sportsbook partners in 2021 after the companies struck five-year pacts worth just under $1 billion combined. The NFL also landed secondary deals with BetMGM, WynnBet, FoxBet, and PointsBet.

Partnership deals with the NFL usually run from three to seven years and cost a minimum of $10 million per year for smaller companies. More prominent firms could pay more than $200 million per year.

FanDuel app

Andrew Harrer | Bloomberg | Getty Images

Verizon has one of the more prominent NFL deals and paid the league over $300 million annually. Last September, the communications company agreed to a new 10-year deal with the NFL and added 5G rights. But the new deal doesn’t include live streams of games, making it less valuable. That also means the NFL’s mobile rights are also up for grabs.

IEG’s estimates come days after the NFL produced one of its most memorable playoff weekends that included the thrilling overtime game between the Kansas City Chiefs and Buffalo Bills. That game Attracted over 42 million viewersthe highest divisional postseason game since 2017.

“It’s not coming from traditional places,” said Peter Laatz, IEG’s global managing director. “It’s coming from emerging categories. Not only are we seeing emerging talent on the field; we’re seeing emerging categories.”

Although gambling sponsorships saw the biggest increase in the NFL’s 2021 season, tech deals ranked first in absolute dollar figures for 2021, led by Microsoft. The tech giant has an on-the-field deal with the league, which uses Microsoft’s Surface tablet. That agreement is worth roughly $100 million per year, according to IEG data.

Gambling deals ranked second, and alcoholic beverage deals ranked third.

Last December, the NFL renewed its deal with Anheuser-Busch, which pays the NFL more than $250 million per year for beer and hard seltzer rights. The company lost control of hard alcohol rights, which Diageo took over for a reported $30 million per year.

The NFL put its wine and champagne rights up for auction but has yet to strike a partnership for that category.

“They’ve cut those categories (tech and alcohol) pretty fine,” said Laatz, calling the NFL’s sponsorship money a “runway revenue train.” He then projected the NFL would endure a “finer cutting of categories” in the future to grow deals in the US

NFL targets global revenue next

Although the NFL’s total sponsorship revenue increased significantly, the bulk of that growth went to league-wide sponsorships, which grew 23%. NFL clubs only took in 4% additional revenue in rights fees year-over-year.

To grow revenue streams for clubs, the NFL is taking a page from the National Basketball Association’s playbook and allowing teams to leverage international markets. Last month, the NFL permitted 18 teams to market their intellectual property in 26 territories, including Canada, Germany, Mexico and the United Kingdom.

But it could be a while before teams see real traction in that department.

There’s no doubt the NFL is dominant domestically, but American football isn’t a big draw overseas like the NBA. In addition, Canada and Australia already have established football leagues, so the NFL has serious competition.

Laatz said he’s “skeptical” of the NFL’s overseas plan, which the league labeled the “International Home Marketing Areas.” The NFL has tried to grow its product in London with its annual games, and Germany has shown interest in the NFL.

But those sporadic overseas games may not be enough to vault the NFL into international prominence loik the NBA.

“There’s a big difference between playing games internationally, which the NFL has clearly done, and having a prominent NFL footprint to grow the sport overseas,” Laatz said.

Still, to get a sense of the value a US-based sports club can earn from international deals: The Golden State Warriors – one of the most popular NBA teams abroad – agreed to a multi-year global rights sponsorship with crypto platform FTX for roughly $10 million total.

Laetz believes NFL teams’ deals could be even more lucrative.

A Bitcoin symbol on an advertisement at Mass Transit Railway station in Hong Kong, China, on Oct. 27, 2021.

Tyrone Siu | Reuters

Still waiting for crypto deals

Meanwhile, the NFL is taking a wait-and-see approach toward deals in the cryptocurrency space.

Last October, at the NFL’s owner meetings in New York, officials told CNBC that crypto-related deals are still being examined. Laatz called it the “sideline model” – as in, the NFL waits to see how other institutions maneuver.

“They’re careful about not getting into speculative arrangements that can cause backtracking,” said Laatz.

While the NFL stalls on crypto deals, companies are pouring millions into the NBA.

In addition to the FTX Warriors deal, crypto platform Coinbase agreed to a $192 million deal over four years with the NBA. On the team level, the Los Angeles Lakers landed a $700 million naming rights deal with Crypto.com. And the Portland Trail Blazers landed the NBA’s first crypto jersey patch deal.

Outside basketball, Major League Baseball added a crypto patch agreement for its umpires, and individual NFL players like Tom Brady are also striking crypto deals.

But Laetz says the delay won’t really matter, given the NFL’s ample revenue growth. “The thing they are leaving on the table right now is risk.”

Psy’s ‘Gangnam Fashion’ MV surpasses 4.three billion views on YouTube ten years after its launch

Psy‘s hit song “Gangnam style” has achieved another impressive feat ten years after its release.

On January 6, the MV for Psy’s “Gangnam Style” topped 4.3 billion views Youtube. “Gangnam Style” is the title track of Psy’s sixth album ‘Psy 6 (Six Rules) Part 1’ released in 2012. With “Gangnam Style”, Psy became the first K-Pop singer to reach number 2 US billboard‘s main song charts ‘Hot 100’ seven weeks, creating a global phenomenon.

Even now, ten years after its great success, “Gangnam Style” continues to receive love from all over the world. Meanwhile, Psy recently announced that he will be making a comeback this year with his ninth full album.

Elon Musk’s inventory gross sales might complete $18 billion by the top of 12 months

SpaceX owner and Tesla CEO Elon Musk will arrive on the red carpet for the Axel Springer Award 2020 in Berlin on December 1st, 2020.

Britta Pedersen | Getty Images

Elon Musks Sales of $ 906 million in Tesla stock Monday brings him one step closer to his ultimate sales goal. The big question: what is the goal?

Based on his November Twitter poll, musk plans to sell 10% of all of its Tesla shares. At the time he owned a little over 170 million shares, so theoretically he plans to sell about 17 million shares for his Twitter promise.

As of Tuesday morning, he had sold a total of 11.9 million shares, according to InsiderScore / Verity. Sales are spread across a staggering 680 sales for a total of approximately $ 12.7 billion. Based on his 10% target, he would likely sell another 5 million shares – which would be more than $ 4.8 billion at Monday’s closing price of around $ 966.

In the end, however, it could be more. Musk makes two types of stock sales – one to pay tax on its compensation package and the other for direct payouts or “to-pocket” sales.

The main reason for selling Musk is to pay the taxes on the exercise of options that expire next summer. As part of a 2012 compensation package, Tesla’s CEO received options on 22.8 million shares that expire next August. The options were valued at more than $ 28 billion when Musk began selling stocks his tax burden would have been as high as $ 15 billion.

The stock has fallen over 20% since then, along with its tax bill. According to InsiderScore / Verity, Musk sold 6.5 million shares to cover taxes on approximately 15 million options. To exercise all of his options – which is likely since their expiry leaves billions on the table – Musk will likely exercise another 7.8 million options and sell an equivalent of $ 4 billion or more to pay taxes.

From a tax perspective, he’s likely to have four or five block sales of 934,000 shares (the amount sold on each of the most recent tax-related sales) before he’s done for the year.

The big unknown is how many additional shares he could sell for cash or “to-pocket” proceeds. So far, he has sold around 5.4 million shares for cash, regardless of whether he exercises options or taxes. If all of his sales are tax-related from now on, he only has $ 4 billion more to sell. However, if he continues to sell for cash – to fund Space-X or other businesses – the number could rise.

Based on his goal of 10%, Musk will likely only sell an additional $ 5 billion before the end of the year. However, if he has other cash plans or needs, sales could go up even further.

Nissan to speculate $17.6 billion to ramp up electrical car providing

A Nissan electric concept car will be on display in the company’s showroom in Yokohama, Japan on November 29, 2021.

KAZUHIRO NOGI | AFP | Getty Images

Japanese automobile giant Nissan will invest 2 trillion yen (approximately $ 17.6 billion) over the next five years to accelerate the electrification of its product line.

Nissan announced on Monday that it would launch 23 new electrified models by 2030, 15 of which will be fully electric.

By the end of the decade, the company is aiming for a 50% electrification mix for its Nissan and Infiniti brands.

On the battery front, the company plans to launch all-solid-state batteries, or ASSB for short, by 2028. A pilot plant for ASSB in Yokohama, Japan, will be completed “in fiscal year 2024”, called Nissan.

In a speech outlining the plans, Nissan chief Makoto Uchida said his company is focused on ASSB’s internal development.

“This enables us to double the energy density compared to current lithium-ion batteries,” he said. “With smaller and thinner batteries, we can offer a flexible layout with more dynamic performance and expand it to larger segments like pickup trucks.”

Nissan is one of several well-known companies pursuing an electrification strategy. In March, Volvo Cars announced a “Full Electric Car Company” by 2030. Elsewhere, BMW Group By 2030, at least 50% of deliveries should be fully electric vehicles.

It comes at a time when major economies around the world are trying to reduce the environmental footprint of transport.

Read more about electric vehicles from CNBC Pro

The UK, for example, wants to stop sales of new diesel and gasoline cars and vans by 2030. From 2035, all new cars and vans will have to have zero tailpipe emissions.

Elsewhere, the European Commission, the executive branch of the EU, aims to reduce CO2 emissions from cars and vans by 100% by 2035.

Earlier this month, signatories of a statement at the COP26 climate summit said they will “work in leading markets by 2040 and no later than 2035 to ensure that all sales of new cars and vans worldwide are emission-free”.

While the US, China and the automakers including Volkswagen, Toyota and Nissan were absent from the statement, signatories included the governments of the United Kingdom, India and Canada, and automobile companies such as ford, General Motors and Volvo cars.

Speaking to CNBC’s Steve Sedgwick on Monday morning, Nissan’s Uchida said his company must be “equipped and ready.” [for] how the market for … electrification will develop. “

While charging, Uchida emphasized the importance of collaboration. “We don’t just concentrate [at] … Nissan but also in the alliance [on] how we can further … contribute to building the infrastructure with regard to the charging stations. “

Renault-Nissan-Mitsubishi is an automotive alliance founded in 1999. Mitsubishi joined the strategic partnership in 2016.

Genuine Manufacturers cabinets IPO, to promote $12.7 billion stake to traders

Jamie Salter, CEO of Authentic Brands Group.

Source: Authentic Brands Group

The retail group Authentic Brands Group plans to have a planned IPO and instead sell significant stakes in its business to a private equity firm CVC capital, Hedge fund HPS investment partner and a pool of existing stakeholders.

The deal valued the company at an enterprise value of $ 12.7 billion and was announced Monday.

Authentic Brands’ portfolio companies include apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, men’s suit maker Brooks Brothers and Sports Illustrated magazine. The sneaker manufacturer Reebok is to be bought early next year expected to be closedto add another brand to its holdings.

The company had IPO applied for in early July. However, Jamie Salter, chief executive of Authentic Brands, said the company will now aim for an IPO in 2023 or 2024. He said he has committed to serving as CEO for another five years.

“The IPO climate is ridiculous,” said Salter in a telephone interview. “I think we would have gotten a massive rating … maybe even more than what we sold the business for. But guess what? I’d rather be private.”

In the last few months a wave of retail companies has entered the public market – eyewear manufacturers Warby Parker and fashion rental platform Rent the runway to the environmentally friendly shoe brand Allbirds and e-commerce fashion site Lulus. Investors have preferred names that have a strong presence on the internet, which some believe Collecting reviews as if they were high-growth tech companies.

CNBC reported that Authentic Brands was aiming for a valuation of approximately $ 10 billion on its public debut.

The transaction with CVC and HPS is expected to close in December this year. At this point in time, the PE company and the hedge fund each retain a seat on the Board of Directors of Authentic Brands.

“We plan to work closely with the ABG team to implement its strategic priorities, particularly with regard to international expansion,” said Chis Baldwin, managing partner at CVC.

BlackRock will retain its position as the largest shareholder in Authentic Brands, which it has held since 2019, the company said. Existing investors including US mall owners Simon Property Group, General Atlantic, Leonard Green & Partners, Brookfield and basketball star Shaquille O’Neal will maintain their equity positions.

When it went public, Authentic Brands reported that its net income increased from $ 72.5 million a year ago to $ 211 million in 2020, while sales rose about 2% to $ 489 million is.

“We have the same playbook today as we did yesterday,” said Salter. “You will hear about more acquisitions by the end of this year.”

CVC recently closed a deal to buy Unilever’s tea business. The company’s other portfolio companies include streetwear brand A Bathing Ape and the animal goods chain Petco, according to his website. HPS was spun off from JP Morgan Asset Management in 2016.

Shaq expands Massive Hen, has location in Islanders $1.5 billion area

Shaquille O’Neal

Rich anger | Getty Images Entertainment | Getty Images

Shaquille O’Neal once signed the richest contract in sports history and then won four NBA titles. These days Shaq has a new business he’s trying to break into: Chicken Sandwiches.

O’Neal, who was inducted into the NBA Hall of Fame in 2016, is a co-owner of a restaurant business called Big chicken, which opened its first location in Las Vegas three years ago. Last year a second opened in Glendale, California.

Now O’Neal is focused on sports arenas, the kind of venue he knows best.

Big Chicken recently opened a location in Seattle’s Climate Pledge Arena, home to the National Hockey League’s newest team, the Kraken. And on Thursday, O’Neal made a quick stop through New York to catch a glimpse of UBS arena, the new $ 1.5 billion home for the NHL’s New York Islanders.

Big Chicken will sell its fried chicken sandwiches during NHL games and other events in the complex in the UBS Arena. Located behind the track for the Belmont Stakes, the arena is set to host its first regular season game on November 20, when the Islanders play against the Calgary Flames.

“Section 206,” said O’Neal, smiling into one of the many local television cameras that were in attendance to capture the promotional event. He was referring to the section where Big Chicken is in the arena.

“This is my ritual,” he told CNBC shortly after the television cameras disappeared. “Fried chicken with cheese, cucumber and hot sauce.”

O’Neal founded Big Chicken with friend Matt Silverman and Agent Perry Rogers. It’s not his first foray into the food industry. O’Neal owns various Papa John locations and even appears in a commercial for the pizza chain. In 2019 he joined the company’s board of directors.

But this is a very different job for O’Neal, because he’s starting the brand from scratch.

The UBS Arena will be the home of the New York Islanders.

Source: New York Islanders / UBS Arena

In the UBS Arena on Thursday O’Neal was accompanied by Islanders co-owner Jon Ledecky. In honor of Veterans Day, they took photos with members of the military and then stood in an unfurnished suite to watch a chef prepare dishes that will appear on Big Chicken’s menu. O’Neal joked about not knowing all of the hockey rules but said he watched NHL games.

One of the sandwiches on the big chicken menu is called Uncle Jerome, named after O’Neal’s uncle. Another is Charles Barkley, a reference to the former NBA star and O’Neal’s “Inside the NBA” broadcast partner. Barkley’s eponymous sandwich comes with mac and cheese on top of the chicken, along with crispy onions and “Shaq sauce”.

Big Chicken also includes the MDE, which stands for the most dominant of all time and is designed to center around O’Neal’s career, mostly for the Los Angeles Lakers. He was eight times the first team in the entire NBA and three times the most valuable player in the final.

In 1996, shortly after arriving in LA from Orlando, the Lakers recognized O’Neal’s dominance. The team signed him to a seven year old, $ 120 million hand out. It was the richest in sports at the time and set the stage for the Lakers’ resurgence.

O’Neal led the Lakers to three straight championships from 2000 to 2002 and won his fourth title at the Miami Heat in 2004. He ended his career with 15 all-star game appearances and an MVP trophy. Last month, O’Neal became one of the 75 best players of all timeas the NBA celebrates its 75th season.

Shaquille O’Neal # 34 and Kobe Bryant # 8 of the Los Angeles Lakers during the 2004 NBA Playoffs

David Sherman | National Basketball Federation | Getty Images

Extensive business portfolio

O’Neal outdated $ 280 million during his playing career and Forbes It is estimated that he made over $ 700 million in total, including his extrajudicial efforts.

O’Neal bet early Google and Apple, and has branded sneakers at Walmart, a clothing line JCPenney and a men’s jewelry line. He also participated in one alkaline water Company this year.

He was a “strategic advisor” for Wynn Resorts” Sports Gambling Unit WynnBET. Due to NBA rules, he had to give up his minority stake in the Sacramento Kings for this deal.

Restaurants were one of the greatest O’Neal plays of his post-NBA life. He told CNBC that opening quick service restaurants (QSRs) has been a passion since his time at Louisiana State University in Baton Rouge. O’Neal said of the book that got him up and running, “The Dummies’ Guide to Starting Your Own Business.”

In May, O’Neal and his Big Chicken team hired Josh Halpern, a former executive at Anheuser-Busch InBev, as managing director.

“We do some things differently,” said Halpern in an interview. “We used a high quality chicken that is antibiotic, cage and hormone free. We want to get better value for money.”

Shaquille O’Neal, NBA star and chief fun officer of Carnival Cruise Line, gives guests a taste of his highly anticipated dishes at sea as part of Big Chicken in the Mardi Gras summer landing zone during Carnival’s NYC cruise Cruise Line will be offered a summer event to celebrate the 2020 arrival of Mardi Gras at Pier 59 on June 18, 2019 in New York City.

Mike Coppola | Getty Images

For expanded distribution, Halpern said, Big Chicken would use what are known as ghost kitchens, which allow it to put items on a menu alongside items from other restaurants so consumers can mix and match in a single order.

Big Chicken in collaboration with Ghost Kitchen brands and will present items on digital menus in front of large retail chains. There’s already one in there a Walmart in Rochester, New York.

The strategy “takes us to some neighborhoods and cities in the US that may not have been early adopter cities,” Halpern said for Big Chicken. He said a location in Rockport, New York will be opening soon.

Big Chicken started accepting franchise applications earlier this year, Halpern said. The cost ranges from $ 450,000 to $ 1.4 million. There’s a $ 40,000 franchise fee and the company pays 5% of sales and 2% combined for national and local marketing.

O’Neal understands the franchise model from his experience with Papa John’s.

“He told me, ‘You better never hurt a franchisee because I’m a franchisee and you would hurt me,'” Halpern said. “He means that 100 percent.”

Another place that consumers can try big chicken sandwiches is on a carnival Cruise. Carnival chairman Micky Arison owns the Miami Heat, which won its first NBA title in 2006 with O’Neal at its center.

Shaquille O’Neal

Scott Mlyn | CNBC

Restaurant franchising has been an attractive investment for many ex-NBA players. Magic Johnson previously owned over 100 Starbucks Locations and has several TGI Fridays restaurants and more than 20 burger kings in his portfolio.

Former NBA player Junior Bridgeman bought numerous Chili and Wendy franchises before selling them for $ 400 million in 2016 want to invest $ 100,000 in QSRs.

“It’s like investing in stocks,” Ratliff told CNBC. “Let it grow, and if you decide to sell it, you sell it or keep it going and take the rest of the growth. But I think it’s a great opportunity. “

Halpern said that QSRs “give you an opportunity to create wealth for a broad mass of people”.

While Big Chicken is O’Neal’s biggest leap into the restaurant business, he’s had others. He owned Shaquille’s, a restaurant in LA Live, an entertainment district around the Staples Center where the Lakers play. After Covid-19 hit and the traffic dried up, O’Neal closed the shutters Shaquilles. He said paying the $ 90,000 monthly rent wasn’t worth it.

“And I didn’t get a PPP loan,” added O’Neal, referring to the Small Business Administration’s paycheck protection program. “So I closed it and we’ll try to reopen one day.”

In February, officials in Atlanta did Suspected arson caused the fire to become a historic Krispy Kreme Franchise that O’Neal bought in 2016. O’Neal told CNBC that he recently approved a new design for the donut shop and plans to reopen in 2022.

“As an athlete, you have to learn to adapt on the fly,” said O’Neal. “You ever see a guy practice a move and then when he takes that move away, [players] don’t know what to do. You have to be able to adapt. “

But O’Neal’s work with Papa Johns could be his best-known role in the industry. He was appointed to the board of directors of Papa John in 2019 to repair the company’s image after former CEO John Schnatter surrendered the previous year racially disparaging comments which he made public.

“Another difficult decision”

One of O’Neal’s former teams, the Phoenix Suns, is now facing a similar controversy.

Earlier this month, a ESPN article Alleged Suns owner Robert Sarver abused employees and made racist and misogynistic comments during his 17-year tenure with the franchise company. Sarver has dismissed the charges and the NBA has opened an investigation into the matter.

“I’m not a draft horse – I’ve had interactions with the man 10 times and I haven’t seen any of them,” said O’Neal. “But if there are allegations of this magnitude from employees, there has to be an investigation.”

The issue rocked the NBA seven years after former LA Clippers owner Donald Sterling sold his team when audio recordings of Sterling surfaced with racist comments.

“If the allegations are true, Adam Silver will have to make another tough decision,” said O’Neal of the Sarver situation. Silver has been an NBA commissioner since 2014.

Shaquille O’Neal will DJ Diesel at the SHAQ Bowl for Super Bowl LV on February 7, 2021 in Tampa, Florida.

Gerardo Mora | Getty Images

As a businessman, one of O’Neal’s most important qualities is making people laugh. During his interviews in the UBS arena, he made a cameraman laugh and caused laughter in the surrounding audience by making fun of the chef who prepared the sample rolls.

O’Neal credits his mother, Lucille, with the motivation behind his approach.

“I just keep making people happy,” he said. “That’s my mission. I’m just trying to grant her wishes and do whatever she says. I have to make people feel good.”

The chicken restaurant market is overcrowded, with Chick-fil-A and Popeyes fighting for the best fried chicken sandwich and MC Donalds and other fast food chains that advertise their own offerings.

When asked if he intended to compete with brands like Popeyes, O’Neal said “absolutely”. Then he added, “And we never run out of chicken – never,” a blow to Popeyes that expired in 2019 amid a social media crush.

Before O’Neal left the event to catch a flight, he was asked to pick the best restaurant in his portfolio.

“I never think about it,” he said. “What I’m proud of is getting my mother what she wanted.”

SEE: Two-time NBA champion Shane Battier is taking his next step as a Yext board member

Correction: This article has been updated to reflect victory in the Miami Heat Finals.

Elon Musk faces a $15 billion tax invoice, which is probably going the true motive he is promoting inventory

Tesla boss Elon Musk visiting the construction site of Tesla’s Gigafactory in Gruenheide near Berlin, Germany, 13 August 2021.

Patrick Pleul | Reuters

Tesla CEO Elon Musk faced a tax burden of more than $ 15 billion on stock options in the coming months, making a sale of its Tesla stock likely this year regardless of the Twitter vote.

Musk asked his 62.7 million Twitter followers over the weekend to sell 10% of his Tesla inventory. “A lot has been done lately with unrealized gains being a means of tax avoidance, so I suggest selling 10% of my Tesla stock,” he tweeted.

The Tesla boss said he would “stick to the results of this survey, no matter which direction it goes.” The results were 58% for the sell and 42% against, suggesting he will sell the shares.

Regardless of the poll results, Musk would likely have started selling millions of shares this quarter. The reason: an impending tax bill of more than 15 billion dollars.

Musk were granted options under a compensation plan in 2012. Since he does not receive any salary or cash bonus, his fortune comes from stock bonuses and the price gains from Tesla. The 2012 grant was for 22.8 million shares at an exercise price of $ 6.24 per share. Tesla stock closed at $ 1,222.09 on Friday, which means its earnings from the stock are close to $ 28 billion.

The company also recently announced that Musk has taken out loans with its shares as collateral, and with the sales, Musk may be looking to repay some of those loan obligations.

As Tesla noted in its 10-Q filing with the Securities and Exchange Commission for the third quarter this year, “If our common stock drops significantly, Mr. Musk could be forced by one or more banking institutions to sell. to sell Tesla common stock to meet his loan obligations when he couldn’t do it another way. Such sales could cause the price of our common stock to decline further. “

The options expire in August next year. However, in order to exercise them, Musk must pay income tax on profits. Since the options are taxed as benefit or compensation to employees, they are taxed on the highest ordinary income, or 37% plus the net investment tax of 3.8%. He will also have to pay the highest California tax rate of 13.3% as the options were granted and largely earned while he was taxable in California.

The combined state and federal tax rate is 54.1%. So the total tax burden on his options would be $ 15 billion at the current price.

Musk has not confirmed the size of the tax bill. But he tweeted, “Note that I don’t get any cash or bonus anywhere. I only have stocks, so I can personally pay taxes by selling stocks.”

With CEOs having limited windows to sell stocks and Musk likely looking to stagger sales over at least two quarters, analysts and tax experts expect Musk to begin selling in the fourth quarter of 2021.

Speaking at the Code conference in September, Musk said, “I have a number of options that expire early next year, so … a huge chunk of options will be sold in the fourth quarter – because I have to or they will expire.”

Musk could of course borrow more against his Tesla stock, which is now over $ 200 billion. Still, he has already pledged 92 million shares to lenders to raise cash. When asked at the Code conference about borrowing from such volatile stocks, he said, “Stocks don’t always go up, they go down.”

Musk is still collecting options beyond those granted over Tesla’s 2012 salary package. In March 2018, Tesla’s Board of Directors presented him with an unprecedented “CEO Performance Award” consisting of 101.3 million stock options (adjusted for the 5-for-1 share split in 2020) in 12 milestone-based tranches.

– CNBC’s Lora Kolodny contributed to this report.

NHL began its $1 billion take care of ESPN and Turner Sports activities – this is how many individuals watched the season openers

Pittsburgh Penguins center Evan Rodrigues (9) takes a break and Tampa Bay Lightning goalkeeper Andrei Vasilevskiy (88) stops during the NHL hockey game between the Tampa Bay Lightning and Pittsburgh Penguins on October 12, 2021 at the Amalie Arena in Tampa, FL , a parade.

Andrew Bershaw | Sportswire icon | Getty Images

The National Hockey League started its 2021/22 season on Tuesday. It’s also the first year of its $ 1 billion media rights package with ESPN and Turner Sports.

The networks told the NHL an average of 884,000 Viewers for ESPN’s double headers on Tuesday, and Turner drew around 669,500 viewers for its national slot on Wednesday. Both numbers are above the NHL average for the last two season openers.

In ESPN’s first game, the Pittsburgh Penguins defeated reigning Stanley Cup champions Tampa Bay Lightning 6-2. That game averaged 984,000 viewers on Tuesday and peaked at over a million viewers, according to ESPN, which used metrics from research firm Nielsen.

the Disney– Own network added that the 2021 contest surpassed its last highly rated NHL opener in October 2001 between the Penguins and Colorado Avalanche. This kick-off in 2001 drew 927,000 spectators.

ESPN also made its debut with the expanding franchise Seattle Kraken, which fell 4-3 against the Las Vegas Golden Knights. The game reached an average of 782,000 viewers and also peaked at over a million viewers. The network said that ESPN + streaming metrics are not included in viewership.

For comparison: the first game of the 2020-21 NHL season opener an average of 972,000 Total number of viewers on NBC’s sports network. This competition featured the Philadelphia Flyers and Penguins and was the most watched regular season game on NBCSN.

Other games from last season’s triple header were the Chicago Blackhawks against the Lightning and Avalanche against the St. Louis Blues. The combined television show had an average of 774,000 viewers, up from 600,000 viewers the previous season.

Alex Ovechkin # 8 of the Washington Capitals shoots the puck against the New York Rangers during the second period at Capital One Arena on October 13, 2021 in Washington, DC.

Patrick Smith | Getty Images

The NHL ended its 16-year partnership with NBC Sports, reaching a $ 1 billion package with ESPN and Turner Sports last April.

On Wednesday TNT released its national double header package and added some crossover appeal. The network featured star NBA commentator Charles Barkley on the pregame show of the Washington Capitals 5-1 victory over the New York Rangers. The game averaged 817,000 viewers and peaked at 920,000 between 9:00 PM and 9:15 PM ET.

In the competition, Capitals star Alex Ovechkin scored two goals to move up to fifth place all-time. The 36-year-old Ovechkin has 732 career goals and still needs 163 to break Wayne Gretzky’s NHL record 894 goals. TNT said there was an average of 522,000 viewers for the second competition in which the Avalanche beat the Blackhawks 4-2.

On the ad front, metrics company EDO estimates that the automotive category leads with 15.4% of ad spend for this season’s NHL opening games. Restaurants accounted for 12.9% and insurance for 11.9% of advertising spending. EDO added Apple Commercials led to search engagement. It’s a metric the company uses to measure online brand search activity in the minutes after a TV ad is broadcast.

LG to pay as much as $1.9 billion to GM over Bolt EV battery fires

A 2019 Chevrolet Bolt EV caught fire at a house in Cherokee County, Georgia, on September 13, 2021, according to local fire departments.

Cherokee County Fire Department

LG Electronics has agreed to make a refund General Motors Up to $ 1.9 billion for the recall of Chevrolet Bolt EVs due to fire risks from faulty batteries from the South Korean supplier.

Issues with the Bolt – the company’s flagship mainstream electric vehicle – have led the automaker to recall every electric car since production began in 2016. The repair of the vehicles, including the complete replacement of some batteries, is on expected to cost $ 2 billionsaid GM on Tuesday. That’s an increase from an earlier estimate of $ 1.8 billion.

The deal between the companies is a huge win for the automaker, who Wall Street missed expectations in the second quarter due to provision costs for the recall.

As a result of the agreement, GM will recognize an estimated recovery in the third quarter that will offset $ 1.9 billion of the $ 2.0 billion in costs related to the recalls.

The production problems occurred at LG Battery Solution’s plants in South Korea and Michigan. The “rare manufacturing defects” on the Bolt electric vehicles are a torn anode strip and a folded separator, which GM says increases the risk of fire when they are in the same battery cell.

“LG is a valued and respected supplier to GM and we are excited to enter into this agreement,” said Shilpan Amin, GM’s vice president of global purchasing and supply chain, in a statement. “Our development and manufacturing teams continue to work together to accelerate the production of new battery modules and we expect to start repairing customer vehicles this month.”